India has launched an insurance scheme for handicrafts artisans. under the scheme the artisan has to pay rs.200 to insurance co. & govt of india will pay rs.801 towards insurance co.In return the insurance co. will pay rs.100000 to the artisan in case of accidental death or a serious injury leading to permanent diability. If there is no death or injury then insurance co. will pay rs.18000 in case there is illness to artisan or his family member. If there is no death, injury or illness the whole amount will go insurance co. the scheme is for one year. it can be renewed after one year by contributing the same sum. please let us know about the scheme whether it is lawful or unlawful.

Answer : 155

Published on: Feb 13, 2008

بسم الله الرحمن الرحيم

(Fatwa: 569/H=359/H)

The aforesaid scheme contains interest as well as Qimar (gambling); and both these things are unlawful by the Quran. Therefore, this scheme will be haram.